Saudi Arabia freezes work for western consultants, even as oil revenue rises

Saudi Arabia has stopped issuing new contracts for western consultants and delayed some payments, despite the kingdom’s oil export revenue soaring to a three-year high on the back of the US-Israeli war on Iran.

The halt in new consultancy contracts came after the US-Israeli war on Iran erupted, The Financial Times reported on Thursday.

One executive told the paper that payments of existing invoices have also been postponed until the end of the second quarter, which is the end of June. Saudi Arabia denied that it halted payments.

While some executives cited the war on Iran for the decision, Saudi Arabia’s hesitancy to engage western consultants may go beyond a war shock.

Saudi Arabia is, in fact, benefiting from rising oil prices and its ability to continue exporting amid the Iran war.